Detecting counterfeit coins involves a few simple techniques that anyone can perform with some level of expertise. Before investing it’s important to determine if your gold coins are authentic and worth their stated value. This topic has become more important as more investors are buying gold as a hedge in times of uncertainty.
Use a Magnet
Many experts recommend using a magnet to determine the authenticity of the coin. For instance, nearly all of China’s counterfeit based coins are produced with an iron-based planchet. If the coin sticks to the magnet, then it is counterfeit. Only one coin in United States history has been counterfeit. The 1943 steel penny is the only authentic coin that will stick to a magnet. All other gold coins that stick to a magnet will be counterfeit in the United States and...
Tag Archives: gold coins
No Motto versus Motto
I get a lot of questions from gold investors as to the difference between “No-Motto” and “Motto” relating to some of the gold coins offered today. No Motto refers to coins which have the words “In God We Trust” removed from the face of the coin, whereas Motto coins still have the wording in place.
In 1907, then President Teddy Roosevelt commissioned sculptor Augustus Saint Gaudens to create new gold coins for the United States. In the process, the coins were created without the “In God We Trust” inscription. The public realized after some time that the words had been removed and they demanded that the “Motto” be restored to the coins. In the middle of 1908, the US Mint halted the production of “No-Motto” Saint Gaudens coins. The coins were then restored with the Motto...
Gold Bars or Gold Coins?
Many investors have contacted me looking to buy Gold Bars, yet many are not educated as to how this actually works. For serious, affluent investors, gold bars can be a good option for investing in gold. Buying Gold Bars can have a benefit, in that an investor is able to buy gold at a very low premium over the spot price of gold. The trade-off is that is much more difficult to sell a gold bar, since this is typically a very large investment and the buyer must be a very sophisticated investor. You may also encounter refining, or handling fees in attempting to liquidate a large gold bullion bar. So the question remains:
So Should I buy Gold Bars or Gold Coins?
This really comes down to your investment profile. For the more novice to intermediate...